Why has Freshworks made its latest strategic move in the IT management space? On December 15, 2025, Freshworks signed a definitive agreement to acquire FireHydrant, an AI-powered incident management software developer. This acquisition is expected to close in the first fiscal quarter of 2026, though specific financial terms remain undisclosed.
Founded in 2018 by Robert Ross and Dylan Nielsen, FireHydrant has developed all-encompassing incident management solutions for IT and DevOps teams. The company’s platform serves notable clients like Palo Alto Networks, BP, and Qlik.
FireHydrant delivers comprehensive incident management for IT and DevOps, powering solutions for enterprise giants like Palo Alto Networks, BP, and Qlik.
FireHydrant offers:
- All-in-one incident management from detection to resolution
- Team-based alerting and on-call scheduling
- Automated workflows with Slack integration
- Connections to services like PagerDuty and DataDog
The strategic acquisition addresses fragmentation issues that often slow incident response times. By combining Freshservice’s IT Service Management with FireHydrant’s capabilities, Freshworks aims to compete more effectively against industry leaders like ServiceNow and PagerDuty. FireHydrant was previously backed by Menlo Ventures and Salesforce before this acquisition.
The unified solution will create a seamless path from problem recognition to resolution, with AI summarizing incident context and providing step-by-step guidance.
This move builds on Freshworks’ recent momentum. In November 2025, the company introduced new AI-powered capabilities for its Freshservice platform through Freddy AI.
Their Q3 2025 revenue reached $215.1 million, representing a 15% year-over-year increase, while Freddy AI’s Annual Recurring Revenue doubled compared to the previous year.
Post-acquisition, FireHydrant will become the Incident Management and Reliability layer inside Freshservice. The integration will enhance SOC II compliance across the combined platform, providing customers with stronger security assurances. The integration will expand reliability capabilities across the combined platform, connecting incident response with service management in a unified ServiceOps solution that leverages real-time communication capabilities essential for modern B2B integration.
The merger promises significant benefits for users: faster incident response times, enhanced operational continuity, centralized visibility across IT and engineering teams, and proactive system maintenance.
